Business Name vs Company in Australia: Which to Pick?

Business name vs company — it’s one of the most common questions for new business owners in Australia. Registering a business name and registering a company sound similar, but they are completely different things, and choosing the wrong one can cost you liability protection you thought you had. Here’s how to decide between a business name vs company.

What is a business name?

A business name is simply the name you trade under. You register it with ASIC, and it is renewable in one-year or three-year terms for a modest ASIC fee. Registering a business name:

Lets you trade under a name other than your own personal name or your company’s name.
Does not create a separate legal entity.
Does not give you limited liability — if you are a sole trader with a business name, you are still personally responsible for the business’s debts.
Does not give you exclusive rights to the name (that’s what a trade mark is for).

What is a company?

A company (Pty Ltd) is a separate legal entity registered with ASIC, with its own ACN. Registering a company:

Creates a separate legal “person” that can own assets, sign contracts and be sued in its own name.
Gives you limited liability — your personal assets are generally protected from business debts.
Can be more tax-effective and looks more established to clients and lenders.
Is required for some structures, such as a corporate trustee for an SMSF.

Do I need both?

Not always. Here is the key point most people miss: a company can trade under its own registered company name without a separate business name. You only need to also register a business name if you want to trade under a different name from the company. For example, “Smith Holdings Pty Ltd” trading as “Bondi Coffee Co” would register that business name; but if it simply trades as “Smith Holdings”, no separate business name is needed.

A sole trader, on the other hand, needs a business name as soon as they trade under anything other than their own legal name.

Business name vs company: which should you choose?

Choose a business name only (as a sole trader) if you are testing an idea, the stakes are low, and you accept personal liability. Choose a company if you want to protect your personal assets, present a professional structure, take on partners or investors, or need a corporate trustee. Many businesses start as a sole trader and move to a company as they grow — but doing it right the first time avoids re-papering contracts, bank accounts and registrations later.

What it costs

A business name is a low ASIC fee with one-year and three-year options. Registering a company costs the $636 ASIC fee (from 1 July 2026) plus any agent service fee. At Cheap Company Setup, that service fee is $60, so a company is $696 all-in with the constitution and all documents included. Not sure how the company process works? Read our step-by-step guide to registering a company in Australia.

Register your company in minutes

If a company is the right choice, you can register it online for $60 + the ASIC fee — 100% online, all documents included, no subscription.

General information only, not legal or financial advice. Fees are current as at July 2026 and set by ASIC — confirm current amounts before relying on them.

Registering a company instead?

Register a Pty Ltd company in Australia for a flat $60 service fee plus the $636 ASIC fee, constitution included. If a sole trader with a business name is enough, you can still register your ABN for free in about 15 minutes.

Business Name vs Company in Australia: Which Do You Need?